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Unformatted text preview: nterest from time
It
deposits by treating the interest as accruing from
day to day.
Note that bank interest income is now exempt.
Note
11 Cash Basis
Cash The assessable profits of a
The assessable profits of a
self-practising barrister
self-practising barrister
can be calculated on a cash
can be calculated on a cash
basis
basis..
12 Deposits and Unclaimed Balances
Deposits Deposits paid by customers as part
paid
payment cannot be brought into trading
payment
receipts until the goods or services have
been delivered / rendered.
been However if the service or sale contract is
However
subsequently cancelled, any nonsubsequently
any nonrefundable receipts have to be brought
into account.
13 Con’t Likewise unclaimed balances can be
Likewise unclaimed
brought into account if the customers
are no longer able to claim them
no
(Jays, the Jewellers Ltd v. CIR (1947)
(Jays,
29 TC 274).
29 14 Valuation of Trading Stock &
Valuation
Work in Progress
Work Apart from the case of cessation, there is no
Apart
cessation there no
provision in the IRO on the valuation of trading
stock for tax purpose.
There is a no. of court cases on stock valuation...
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